Agency relationships do not last forever. They can end in several ways: fulfillment of purpose (sale closes), expiration of the agreement term, mutual consent, revocation by the principal, renunciation by the agent, death or incapacity of either party, bankruptcy, or destruction of the property.
A listing agreement expires after 6 months without a sale. The agency relationship automatically terminates. If the seller wants to continue, a new listing agreement must be signed.
Know ALL termination methods. The tricky exam question: if the principal REVOKES, the agency ends but the principal may owe damages. If the agent RENOUNCES, the agent may be liable. Death of either party terminates agency IMMEDIATELY — no exceptions.
Related Terms
Related Concepts
A legal relationship in which one person (the agent) is authorized to act on behalf of another person (the principal) in business transactions with third parties.
The highest legal obligation of trust and confidence owed by an agent to their principal, requiring the agent to act solely in the principal's best interest.
A situation where a single agent or brokerage represents both the buyer and the seller in the same real estate transaction.
An arrangement where a brokerage assigns separate agents within the firm to represent the buyer and seller in the same transaction, allowing each client to have dedicated representation.
A non-agency relationship where the broker facilitates a real estate transaction without representing either party, owing limited duties of honesty, fairness, and competence to both.
Frequently Asked Questions
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